THE SAGINAW NEWS
Hollywood Video is closing the doors on its Old Saginaw City location.

The retailer's parent, Movie Gallery Inc., North America's second-largest video-rental company, said early this month it would shutter about 400 under-performing unprofitable stores, in addition to closures it announced in September when it filed for Chapter 11 bankruptcy.

The 323 N. Michigan location is one of 11 Michigan sites that will go out of business, including outlets in Essexville and Flint. A Bay City site had close earlier.

Stores at 3085 Bay in Saginaw Township and in Midland will remain open.

Operations that are closing will have a final day of rentals on Saturday and begin a liquidation sale Tuesday. Employees at those locations said actual closing dates are not yet determined.

Movie Gallery has retained the Great American Group, a professional services firm, to sell off inventory at closing stores, a company statement said.

Once the store is vacated "it creates an opportunity for another business to fit in down here," said Paul Barrera, owner of Jake's Old City Grill, 100 S. Hamilton, and who heads up the West Side Civic Association.

The video rental industry is less than 25 years old but is undergoing a change that leaves brick-and-mortar stores out, Barrera said.

"It's a business where people are demanding instant gratification," he said.

On-demand movies offered through cable television, pay-per-view movies through satellite providers and companies that send movies through the mail have become more popular.

Hollywood Video's location has "great parking and great frontage," Barrera said. "It should be an excellent opportunity for someone who wants to market it."

Kessel Enterprises owns the building, which also houses a Save-A-Lot grocery. No one was available for comment Thursday at the Grand Blanc-based corporation.

Jean Spenner covers business for The Saginaw News. You may reach her at 776-9683.